The trustee for the Bronson Corporation pension sent a report to the CEO with the following information for the fiscal year:
$\begin{array}{lr}
\text { Beginning balance of plan assets at fair value } & \$ 1,560,000 \
\text { Actual return on plan assets } & \$ 210,000 \
\text { Employer's contribution } & \$ 150,000 \
\text { Distributions to retirees } & \$ 75,000 \
\text { Service cost } & \$ 125,000 \
\text { Interest cost I } & \$ 156,000 \
\text { Loss from changes in benefits or assumptions } & \$ 35,000 \
\text { Beginning balance of the PBO } & \$ 1,580,000
\end{array}$
-At the beginning of the year,the pension plan is

Question

Quizplus · Accepted Answer

The pension plan is underfunded by $20,000 at the beginning of the year because the beginning balance of the Projected Benefit Obligation (PBO) is $1,580,000, which is $20,000 more than the beginning balance of plan assets at fair value, which is $1,560,000.

The Trustee for the Bronson Corporation Pension Sent a Report